Wage Earners Should Consider Possibility of Suing IRS for Tax
Refunds Rather Than Filing Exempt W-4 Forms
by Bill Conklin
The Correspondent Columnist
Many individuals who are employed are having a great deal of
difficulty with the Freedom Movement. They were used to filing
an exempt W-4 and then taking their funds home during the year.
At the end of the year, they would not file tax returns.
Of course, the government was caught off guard, but after
several years, the $500 penalty was instituted. The government
has repeatedly used this penalty to punish individuals who have
filed exempt W-4 forms.
Furthermore, the exempt W-4 is routinely used as an element of
willfulness in criminal trials; and juries are routinely
convicting. To top it all off, individuals who are employed are
not judgment proof because the IRS can garnish their wages.
Although some individuals are aware that it is not reasonable to
not file a tax return except upon the advice of counsel; there
are thousands of individuals who persist in not filing and not
seeking professional advice regarding their position, in spite
of the fact that such a stand creates unnecessary civil and
criminal liability.
People obviously learn very slowly.
To make the situation worse, there are individuals who are
considered Gurus in the Freedom Movement who continue to advise
their followers to do things that will cause them to lose their
property.
Unfortunately, it seems that many Freedom Movement gurus are
simply unrealistic in their approach with the wage-earning
public.
These gurus are judgment proof, they earn their living from the
followers in the movement; but the followers don't enjoy the
same standards of protection.
Hence, many followers are unwittingly led toward the slaughter
at the hands of the IRS: homes are destroyed, marriages are
destroyed, and the IRS is making thousands of dollars
confiscating property of the unwary.
If you are a wage earner, you are not judgment proof. You will
have to quit your job or capitulate if the IRS garnishes your
wages.
Although there is the possibility of injunctive relief, it is no
sure winner; and the injunctive relief suit would be better
filed as a refund suit which has clear jurisdiction in the
Internal Revenue Code.
It is for the above reasons that I believe the use of an exempt
W-4 for wage earners is obsolete and a new creative approach
must be taken. Whereas the self-employed individual may truly
be judgment proof because his source of income comes from many
sources, the poor wage earner can be controlled with a mere
letter from the IRS.
It is the rare employer that will not capitulate to an IRS
demand, and furthermore, the IRS may simply take funds from an
employer if he refuses to honor a levy.
With these ideas in mind, you might consider a new approach. It
is unlikely that the IRS will be able to damage you either
civilly or criminally if your employer has sent the tax to them.
Now, remember that the Freedom Movement is not about saving
money.
It is about freedom, therefore it won't bother you if the
employer sends in the funds; you will then be in a position to
sue to get your money back.
If your employer requires you to fill out a W-4 as a condition
of your employment, then sign the W-4 with a statement attached
attesting to the fact that you are signing under duress as a
condition of employment and that you don't consider yourself to
be liable for the income tax. (or whatever other Patriot
argument you wish to make). Put an amount of allowances that
will allow you a refund of a couple of hundred dollars (even
using the IRS' interpretation of the law).
Now if you have opinion letters from attorneys and other
professionals, you know that you cannot be required to file a
tax return; you don't have to file.
However, if you want to get your money back (that the employer
has sent to the IRS), then you should file a claim for a refund.
Of course, you should use your own form if you object to the use
of government forms); after six months, or after a refusal of
the IRS to refund your money, you can sue in the District Court
for a refund.
Now there are many arguments that are currently popular in the
movement. There is the argument that there is no jurisdiction
for the income tax, there is the argument that the assessment is
not proper, there is the argument that there is no statute that
makes you liable, etc.
Don't you think it would be more fun to fight the IRS from an
offensive standpoint than from a defensive standpoint? And all
you have to do to create this situation is let your employer
send the money to the IRS and then sue.
There are those of you in the movement who will still insist on
the use of an Exempt W-4 or on trying to eliminate withholding
some other way; but I ask you to consider this thought: If you
need the job now, how do you know that you won't need the job
when the IRS garnishes your wages?
Can you live on $75.00 a week? If not, then let the IRS have
the money; don't file a return, if you have been advised by
counsel that you are not required to file; file a claim for a
refund using your own format and sue in the federal district
court for a refund.
Then sit back and fantasize: "What would happen if only 10,000
individuals out of the 250 million in this country would file
refund claims from an offensive posture each year instead of
filing tax returns?
Have fun with your fantasy and please, for your own sake, learn
to fight smart. There is no need to break up your marriage,
have a nervous breakdown or lose your livelihood over this
battle.
If you must be employed, deal with the reality of your
situation, and plan accordingly. Good Luck.
Remember fighting the IRS is a blast and enjoy yourselves. ***
.Posted to Freedom Fighters BBS 406-295-5611
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